REGULAR MEETING OF THE ELECTRIC UTILITY COMMISSION FEBRUARY 12, 2024 6:00 PM AUSTIN ENERGY HEADQUARTERS/SHUDDE FATH CONFERENCE ROOM 4815 MUELLER BLVD AUSTIN, TEXAS Some members of the Electric Utility Commission maybe participating by videoconference. Public comment will be allowed in-person or remotely by telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than noon the day before the meeting is required for remote participation. To register contact Robin Otto, at Robin.Otto@austinenergy.com or via phone at 512-322-6254. AGENDA Members: Dave Tuttle, Chair Kaiba White, Vice Chair Raul Alvarez Cesar Benavides Jonathon Blackburn Randy Chapman Mick Long Cyrus Reed Vacant Vacant Vacant CALL MEETING TO ORDER PUBLIC COMMUNICATION: GENERAL The first 5 speakers signed up prior to the meeting being called to order will each be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda. APPROVAL OF MINUTES 1. Approve the minutes of the Electric Utility Commission Special Called meeting on January 22, 2024. DISCUSSION AND ACTION ITEMS 2. Recommend authorizing execution of a contract for construction services, for the Kramer Lane Substation project with Capital Excavation Company, in the amount of $12,272,916 plus a $1,227,291 contingency for a total contract amount not to exceed $13,500,207. 3. Recommend authorizing negotiation and execution of a contract for an underground feasibility and overhead distribution resilience study with Burns & McDonnel Engineering Company, Inc., in an amount not to exceed $1,725,000. 4. Recommend authorizing an amendment to the 2023 Chilled Water Construction in the Right-of- Way Indefinite Delivery/Indefinite Quantity construction contract with DeNucci Constructors to increase the amount by $6,250,000, for a revised total contract amount not to exceed $31,250,000. 5. Recommend authorizing negotiation and execution of a multi-term cooperative contract to provide rental of industrial equipment with United Rentals (North America) Inc, for up to five years for a total contract amount not to exceed $4,500,000. 6. Recommend authorizing negotiation and execution of a contract for Splunk cyber security software products and services, with GTS Technology Solutions, Inc., for a term of three years in an amount not to exceed $1,200,000. 7. Recommend authorizing execution of a contract for construction services with Alpha Paving Industries, LLC to provide a New Austin Energy Pole Yard at St. Elmo Service Center in the amount of $312,470, plus a …
Cover Letter from EUC Resource Planning Working Group February 1, 2024 Process In December 2022, Austin City Council Resolution 20221201-040 directed Austin Energy to collaborate with the Electric Utility Commission to update the “Resource, Generation and Climate Protection Plan to 2030 (2030 Plan),” adopted by the Austin City Council in December of 2020. The 2030 Plan committed Austin Energy to continue safely delivering clean, affordable, and reliable energy sufficient to meet customer demands while pursuing the City of Austin's climate protection and sustainability goals. In August 2023, the Electric Utility Commission (EUC) created the Resource Planning Working Group (Working Group) to provide leadership and guidance to Austin Energy and the Austin City Council on technical and market issues to meet environmental, efficiency and affordability goals established by the Austin City Council. The 16-member Working Group1 included members of the EUC, members of the Resource Management Commission and several others who represented different elements of the Austin community. Members brought expertise on a variety of energy topics to this effort. The working met on 14 occasions between September 2023 and January 2024. The Working Group created a website for meeting notes, presentations, and materials. The Working Group examined the initial presentation by Austin Energy, the 11 resource portfolios modeled by Austin Energy, technology assessments from Austin Energy, staff responses to questions from the Working Group, and the results of four additional resource portfolios constructed by the Working Group and modeled by Austin Energy. Austin Energy presented those four additional scenarios on January 10, 2024. In addition, the Working Group received information and presentations on many of the technologies and issues relevant to the Plan, including batteries with various energy storage durations, hydrogen technology, geothermal energy, energy efficiency and demand response, renewable resources, the Fayette coal plant, transmission, regulatory changes, and new funding resources and tax incentives available under the federal Inflation Reduction Act. A Changing Landscape As Austin Energy has noted, many market conditions, opportunities and challenges have changed since the 2030 Plan was adopted by the Austin City Council in 2020. 1 One of the 16 working group members had to leave in early January because of a new job. Cover Letter from EUC Resource Planning Working Group 1 First, the costs of electricity have risen. Austin increased electricity base rates in 2022, particularly for residential customers, and has increased the Power Supply Adjustment (PSA) rate three times since the …
EUC Report re Council Action February 12, 2024 Item 22 Item below recommended by EUC January 22; Council approved on date indicated in parenthesis. (2/1) Recommend authorizing execution of two contracts for batteries, battery banks and battery testing services with Direct Current Preventive Maintenance LLC d/b/a DCPM and Exponential Power Inc. each for up to five years for total contract amounts not to exceed $3,500,000 divided between the contractors. Item below not recommended by EUC January 22; Council approved on date indicated in parenthesis. (2/1) Recommend authorizing negotiation and execution of two contracts for tree growth regulator services with Edko LLC and T&S Growth Solutions, LLC, each for up to three years for total contract amounts not to exceed $5,000,000, divided between the contractors.
Item 2 ..Title P osting Language Authorize execution of a contract for construction services, for the Kramer Lane Substation project with Capital Excavation Company, in the amount of $12,272,916 plus a $1,227,291 contingency for a total contract amount not to exceed $13,500,207. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority Owned and Women Owned Business Enterprise Procurement Program) through the achievements of Good Faith Efforts with 5.90% MBE and 1.63% WBE participation]. ..Body Lead Department Financial Services Department. Managing Department Austin Energy. Fiscal Note Funding is available in the Capital Budget of Austin Energy. Purchasing Language: The Financial Services Department issued an Invitation for Bids (IFB) 6100 CLMC989A for these goods and services. The solicitation issued on October 9, 2023, and closed on November 9, 2023. Of the four offers received, the recommended contractor submitted the lowest responsive offer. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s Financial Services website, Austin Finance Online. Link: Solicitation Documents. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. Council Committee, Boards and Commission Action: February 12, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: The North MoPac area is experiencing rapid growth with taller, denser developments that have utilized the substation capacity in this service area. The new Kramer Lane Substation will provide the substation capacity necessary to reliably serve new developments, and it will strengthen the distribution system in this part of the service area. This item includes one allowance. The allowance of $10,000 will be used to address traffic control plans. An allowance is an amount that is specified and included in the construction contract or specifications for a certain item(s) of work when details are not determined at the time of bidding. Due to the potential for unknown conditions, a 10% contingency has been included to allow for the expeditious processing of any change orders to cover any unforeseen construction costs associated with the project. The contract allows 150 calendar days for completion of this project. This project is located within zip code 78758 (District 7), which is inside the Austin city limits and Austin …
Item 17 EUC Resource Planning Working Group Recommendations for the “Austin Energy Resource, Generation and Climate Protection Plan to 2035” Clean and Carbon-Free Energy for an Affordable and Livable Austin Presentation to the Electric Utility Commission February 12, 2024 Cyrus Reed, Chair, EUC Resource Plan WG Kaiba White, Vice-Chair, EUC Resource Plan WG 1 Overview 1. Working Group Members & Process 2. Setting the Context for Recommendations a. City climate goal - net zero by 2040, w/ most reductions by 2030 b. High ERCOT prices and obligations c. Price separation d. e. f. Green hydrogen not ready Federal money available Local air pollution should be avoided 3. Our Preferred Resource Mix a. Demand Reduction First b. No Coal ASAP c. Reduced Gas (REACH), retire by 2035 d. e. f. g. Affordability Goal Future Studies & Process Solar and Renewables Expanded Storage EVs 4. 2 EUC Resource Planning Working Group Members EUC WG consisted of 16 Members: 5 from EUC, 4 from RMC and 7 additional Cyrus Reed Electric Utility Commission Christian Fogerty Sunrise Austin Kaiba White Electric Utility Commission Micalah Spenrath residential customer Dave Tuttle Electric Utility Commission Autumn Gallardo Foundation Communities Randy Chapman Electric Utility Commission Al Braden residential customer Mick Long Electric Utility Commission Rodrigo Leal Joint Sustainability Committee Alison Silverstein Resource Management Commission Paul Robbins Resource Management Commission GeNell Gary Resource Management Commission Melissa Caragati Resource Management Commission Jim Stanway Samsung Marian Sanchez PODER 3 EUC Workgroup Process ● WG analyzed 11 Austin Energy scenarios, 4 additional scenarios, separate presentations from associations and vendors, and made many requests for information from Austin Energy ● Presentations, resources, meeting notes and final recommendations and individual statements are posted here: https://austineucresourceplanningwg.org/ ● WG met 14 times between September 2023 to January 2024 and released recommendations on February 1st of Austin ● Final Product Released on Feb 1, 2024 endorsed by 14 of 16 members. ○ One member - Melissa Caragati - recused herself as she left the RMC to take a job with the City ○ One member - Jim Stanway - while supporting most of the recommendations offered a ○ dissenting opinion Two other members - Mick Long and Randy Chapman - signed the recommendations and also offered additional comments 4 Federal Funding Can Help City of Austin and AE Meet Climate Goals Two Federal Bills, the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) …
Cover Letter from EUC Resource Planning Working Group February 1, 2024 Process In December 2022, Austin City Council Resolution 20221201-040 directed Austin Energy to collaborate with the Electric Utility Commission to update the “Resource, Generation and Climate Protection Plan to 2030 (2030 Plan),” adopted by the Austin City Council in December of 2020. The 2030 Plan committed Austin Energy to continue safely delivering clean, affordable, and reliable energy sufficient to meet customer demands while pursuing the City of Austin's climate protection and sustainability goals. In August 2023, the Electric Utility Commission (EUC) created the Resource Planning Working Group (Working Group) to provide leadership and guidance to Austin Energy and the Austin City Council on technical and market issues to meet environmental, efficiency and affordability goals established by the Austin City Council. The 16-member Working Group1 included members of the EUC, members of the Resource Management Commission and several others who represented different elements of the Austin community. Members brought expertise on a variety of energy topics to this effort. The working met on 14 occasions between September 2023 and January 2024. The Working Group created a website for meeting notes, presentations, and materials. The Working Group examined the initial presentation by Austin Energy, the 11 resource portfolios modeled by Austin Energy, technology assessments from Austin Energy, staff responses to questions from the Working Group, and the results of four additional resource portfolios constructed by the Working Group and modeled by Austin Energy. Austin Energy presented those four additional scenarios on January 10, 2024. In addition, the Working Group received information and presentations on many of the technologies and issues relevant to the Plan, including batteries with various energy storage durations, hydrogen technology, geothermal energy, energy efficiency and demand response, renewable resources, the Fayette coal plant, transmission, regulatory changes, and new funding resources and tax incentives available under the federal Inflation Reduction Act. A Changing Landscape As Austin Energy has noted, many market conditions, opportunities and challenges have changed since the 2030 Plan was adopted by the Austin City Council in 2020. 1 One of the 16 working group members had to leave in early January because of a new job. Cover Letter from EUC Resource Planning Working Group 1 First, the costs of electricity have risen. Austin increased electricity base rates in 2022, particularly for residential customers, and has increased the Power Supply Adjustment (PSA) rate three times since the …
EUC Resource Planning Working Group Recommendations for the “Austin Energy Resource, Generation and Climate Protection Plan to 2035” Clean and Carbon-Free Energy for an Affordable and Livable Austin Presentation to the Electric Utility Commission February 12, 2024 Cyrus Reed, Chair, EUC Resource Plan WG Kaiba White, Vice-Chair, EUC Resource Plan WG 1 Overview 1. Working Group Members & Process 2. Setting the Context for Recommendations a. City climate goal - net zero by 2040, w/ most reductions by 2030 Federal money available Fayette current usage and emissions Local air pollution should be avoided b. c. d. 3. Our Preferred Resource Mix a. Demand Reduction First b. No Coal ASAP c. Reduced Gas (REACH), retire by 2035 d. e. f. Solar and Renewables Expanded Storage EVs and DERMS 4. Affordability Goal 5. Future Studies & Process 2 EUC Resource Planning Working Group Members EUC WG consisted of 16 Members: 5 from EUC, 4 from RMC and 7 additional Cyrus Reed Electric Utility Commission Christian Fogerty Sunrise Austin Kaiba White Electric Utility Commission Micalah Spenrath residential customer Dave Tuttle Electric Utility Commission Autumn Gallardo Foundation Communities Randy Chapman Electric Utility Commission Al Braden residential customer Mick Long Electric Utility Commission Rodrigo Leal Joint Sustainability Committee Alison Silverstein Resource Management Commission Paul Robbins Resource Management Commission GeNell Gary Resource Management Commission Melissa Caragati Resource Management Commission Jim Stanway Samsung Marian Sanchez PODER 3 EUC Workgroup Process ● WG analyzed 11 Austin Energy scenarios, 4 additional scenarios, separate presentations from associations and vendors, and made many requests for information from Austin Energy ● Presentations, resources, meeting notes and final recommendations and individual statements are posted here: https://austineucresourceplanningwg.org/ ● WG met 14 times between September 2023 to January 2024 and released recommendations on February 1st of Austin ● Final Product Released on Feb 1, 2024 endorsed by 14 of 16 members. ○ One member - Melissa Caragati - recused herself as she left the RMC to take a job with the City ○ One member - Jim Stanway - while supporting most of the recommendations offered a ○ dissenting opinion Two other members - Mick Long and Randy Chapman - signed the recommendations and also offered additional comments 4 Federal Funding Can Help City of Austin and AE Meet Climate Goals Two Federal Bills, the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) offer significant funding: ● Weatherization: $174 million (TDHCA) …
ELECTRIC UTILITY COMMISSION REGULAR MEETING MINUTES Monday, February 12, 2024 The Electric Utility Commission convened in a regular meeting on Monday, February 12, 2024, at Austin Energy Headquarters, 4815 Mueller Blvd, Austin, TX 78723. Chair Dave Tuttle called the Electric Utility Commission meeting to order at 6:05 p.m. Commissioners in Attendance: Dave Tuttle, Chair; Kaiba White, Vice Chair; Cesar Benavides, Randy Chapman, Mick Long, Cyrus Reed Commissioners in Attendance Remotely: Raul Alvarez, Jonathon Blackburn PUBLIC COMMUNICATION: GENERAL There were 4 speakers under general communications. Craig Nazor and Al Braden spoke about items 17 and 21. Dale Bulla spoke about the resource generation plan. Raphael Schwarz spoke about the resource generation plan, the location of the potential gas plant and impacts to the community. APPROVAL OF MINUTES 1. Approve the minutes of the Electric Utility Commission Special Called Meeting on January 22, 2024. The motion approving the minutes of the Special Called Electric Utility Commission meeting of January 22, 2024, were approved as amended on Commissioner Chapman’s motion, Commissioner Reed’s second on an 8-0 vote and three vacancies. The minutes were amended to change the number of EUC members on the Resource Generation Plan Working Group from 4 to 5. DISCUSSION AND ACTION ON RECOMMENDATIONS The motion to approve recommendations 3, 4, 6-8, 10, 11, 13, 15, and 16 were approved on Commissioner White’s motion, Commissioner Chapman’s second on a (8-0) vote and three vacancies. The motion to approve recommendations 2, 12 and 14 were approved on Commissioner Reed’s motion, Commissioner Tuttle’s second on a (8-0) vote and three vacancies. The motion to approve recommendations 5 and 9 were approved on Commissioner Chapman’s motion, Commissioner Reed’s second on a (7-0-1) vote with Commissioner White abstaining and three vacancies. 2. Recommend authorizing execution of a contract for construction services, for the Kramer Lane Substation project with Capital Excavation Company, in the amount of $12,272,916 plus a $1,227,291 contingency for a total contract amount not to exceed $13,500,207. 3. Recommend authorizing negotiation and execution of a contract for an underground feasibility and overhead distribution resilience study with Burns & McDonnel Engineering Company, Inc., in an amount not to exceed $1,725,000. 4. Recommend authorizing an amendment to the 2023 Chilled Water Construction in the Right-of-Way Indefinite Delivery/Indefinite Quantity construction contract with DeNucci Constructors to increase the amount by $6,250,000, for a revised total contract amount not to exceed $31,250,000. 5. Recommend authorizing negotiation and …
